EUR/USD tests highs near 1.3720

FXStreet (Edinburgh) - The shared currency leaves its comfort zone around the 1.3700 handle on Tuesday, lifting the EUR/USD to re-test overnight peaks near 1.3720.

EUR/USD focus on ZEW, Praet speech

The pair would be poised to challenge the upper band of the range, as market consensus expects the key ZEW Survey in both Germany and the EMU to show improvements in all of its components for the month of February. On the opposite side, expectations point to a narrower EMU’s Current Account surplus in December (€21.0 billion vs. €23.5 billion prev.) although this result would be largely by-passed by traders. “With equities pushing back toward their Jan highs and with the Jan PMI data pointing to further growth momentum for Germany, we see upside risks to both the current situation and expectations components for the ZEW”, noted Prashant Newnaha, Strategist at TD Securities.

EUR/USD levels to consider

At the moment the pair is up 0.05% at 1.3712 facing the next resistance at 1.3716 (high Jan.27) followed by 1.3740 (high Jan.24) and finally 1.3776 (2014 highs Jan.2). Onthe flip side, a breakdown of 1.3608 (Kijun Sen line) would allow 1.3595 (daily cloud base) and then 1.3585 (low Feb.13).

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